Judge in Hall case dismisses suit

WASHINGTON -- A federal judge ruled in favor of the airlines and
dismissed the Sarah Hall class-action lawsuit, which alleged more
than a dozen airlines conspired to reduce and eliminate commissions
to U.S. agents.

The decision Oct. 30 by W. Earl Britt of the U.S. District Court
for the Eastern District of North Carolina, Southern Division, came
just a few weeks after he approved a settlement with one of the
defendants, Lufthansa.

By technicality, the lawsuit was not dismissed against airlines
still in bankruptcy, but Britt made his feelings clear about the
case's legitimacy, or lack thereof.

In a blistering and unflinching attack on the merits of the
lawsuit, Britt labeled the various claims of evidence put forth by
Hall and the other plaintiffs as "unconvincing," "sheer
speculation" and "ludicrous."

On the other hand, the airlines "offer overwhelmingly compelling
evidence that the commission cuts and caps ... were just as likely
the result of competitive conduct and natural changes in the market
as of the illegal conspiracy alleged by plaintiffs," the judge
said.

The economic state of the airline industry may be "the most
compelling evidence" to explain the airlines' decisions, he
added.

As to the airline matches of the cuts, Britt said it is
"perfectly legitimate" for an airline to consider what a competitor
is paying agents in deciding what to do with its own
commission.